Marketing Strategy and Competitive Positioning pdf ebook

Power structures
The impact of which organisational units have the greatest influence may also be effective in 
segmenting a market to identify targets matching a supplier’s strengths. Digital Equipment 
traditionally targeted engineering-led customers, where its strengths in engineering applica-
tions gave it a competitive edge.
Purchasing policies
The way different customers approach purchasing may also be a source of targeting informa-
tion. Customers might divide, for example, into those who want a lease-based deal versus 
those who want to purchase; those with affirmative action policies versus those dominated 
by price issues; those who want single supply sources versus those who want to dual-source 
important supplies; public sector and similar organisations where bidding is obligatory 
versus those preferring to negotiate price; those actively pursuing reductions in their sup-
plier base compared with others. Indeed, the model proposed previously, of the customer’s 
relationship requirements as a basis for segmenting, may be even more useful in the business 
market, where the demand for partnership between suppliers and customers characterises 
many large companies’ approaches to purchasing.
Product application
The product application can have a major influence on the purchase process and criteria and 
hence supplier choices. The requirements for a small motor used in intermittent service for 
a minor application in an oil refinery will differ from the requirements for a small motor in 
continuous use for a critical process.
7.6.2 Attitudinal characteristics
It is possible also to segment business markets on the basis of the benefits being sought 
by the purchasers. As we saw, benefit segmentation in the consumer market is the process 
of segmenting the market in terms of the underlying reasons why customers buy, focusing 

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